Establishing Credibility and Avoiding Greenwash in Sustainability Communications

Establishing Credibility andAvoiding Greenwash

Scot CaseTerraChoice

©Scot Case, TerraChoice Environmental Marketing, 2008

Green is Suddenly Everywhere

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Presentation Notes

The Business Week global warming issue in December gave the issue significant coverage (a couple of pieces were included in your pre-reading) An upcoming issue of Forbes will deal with climate change

http://en.wikipedia.org/wiki/Image:JohnsonandJohnsonLogo.gif�


…Even Soap Opera Digest


Environmental Claims are Growing

•Eco-safe

•Environmentally friendly

•Earth friendly

•Earth smart

•Environmentally safe

•Environmentally preferable

•Essentially non-toxic

•Practically non-toxic

•Made with non-toxic ingredients

•Degradable

•Biodegradable

•Compostable

•Environmentally safe

•CFC-free

•Ozone friendly

•Recyclable

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Brief History of Greenwashing In the late 1980s and early 1990s when professional purchasers and individual consumers first became interested in buying “green” products, the following kinds of claims began appearing on products: � Essentially non-toxic. Earth-friendly. Eco-safe. One-hundred percent natural. Environmentally safer. Made with non-toxic ingredients. Earth smart. Ozone safe. � Manufacturers were using the terms indiscriminately and without any attempt to clarify their meaning. Consumers were rightly confused about the meaning of the claims. Following numerous consumer complaints, the U.S. Federal Trade Commission (FTC), which enforces a wide variety of consumer protection laws, began investigating what the FTC Chair at the time referred to as “advertising pollution.” As part of its investigation, the FTC identified a variety of deceptive advertising practices including manufacturers making unsubstantiated environmental claims and misleading consumers about the environmental benefits of their products. Following its investigation, the FTC issued its Guides for the Use of Environmental Marketing Claims in 1992 outlining acceptable and unacceptable environmental marketing practices. They were revised and updated in 1998. The FTC guidelines require manufacturers to provide specific details explaining any environmental claim without overstating an environmental attribute or benefit. According to the guidelines, generic claims of “environmental preferability,” “environmentally friendly,” or “Earth smart” are to be avoided because they do not provide purchasers with any specific information that can be used to compare products. Such claims are unacceptable without an accompanying explanation detailing the specific environmental requirements necessary to justify the claim. After the FTC published its guidelines, the most egregious greenwashing claims, including the use of terms such as “essentially non-toxic” and “environmentally safe,” began to decrease. Manufacturers became much more selective and accurate with many of their environmental claims.


Beware of Greenwashing

Green∙wash (grēn'wŏsh', -wôsh') – verb: the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service

WARNING:

Learn to ask critical questions or you might be selling products with creative marketing rather than products

with legitimate environmental benefits.


Six “Sins” of Greenwashing

• Sin of Irrelevance – Factually correct, but irrelevant, environmental assessments (e.g., “CFC-free”)

• Sin of the Hidden Trade-Off – Focusing on one or two environmental facts, but ignoring other significantly more important environmental concerns.

•Sin of Fibbing – Misleading customers about the actual environmental performances of their products.

•Sin of No Proof – Also known as the sin of “just trust us,” some manufacturers are unable to provide proof of their environmental claims.

Presenter

Presentation Notes

The New Face of Greenwashing While greenwashing decreased following the release of the FTC guidelines, it did not completely disappear. In fact, as demand for more environmentally preferable products rises, greenwashing appears to be reemerging as an important concern for purchasers and other supply chain professionals. A forthcoming study of modern greenwashing practices identifies the following six greenwashing “sins.” Sin of Fibbing – While rare, some manufacturers do mislead customers about the actual environmental performance of their products. Some manufacturers have claimed that their products meet the environmental standards developed by EcoLogo or Green Seal when it is clear they do not. The EcoLogo program even has a fraud advisory section on its website warning purchasers about misuses of the EcoLogo certification mark. (See < www.environmentalchoice.com/English/ECP%20Home/>.) Sin of Unsubstantiated Claims – Also known as the sin of “just trust us,” some manufacturers are unable to provide proof of their environmental claims. Others use words like “green” or “eco” in their corporate or product names and hope no one asks for details. All environmental claims should be verified by an independent certifying body or auditor or the manufacturer should be willing and able to provide the necessary documentation to prove a claim when it is requested. Purchasers should be able to easily verify the recycled-content of a product or to learn whether it contains any ingredients of concern. Sin of Irrelevance – Some manufacturers make factually correct environmental assessments that are no longer relevant for the particular product category. As an example, many aerosol products continue to make “CFC-free” claims even though CFCs have been banned in these products since 1978. These accurate but irrelevant environmental claims can confuse even savvy purchasing professionals. Sin of the Hidden Trade-Off – Many products make bold claims about a single environmental attribute, which can lead purchasers to mistakenly believe that it is the only environmental attribute of concern for a particular product category. A cleaning product manufacturer, for example, is currently displaying an environmental certification mark documenting that its cleaning products are manufactured in a facility powered by renewable energy, which is clearly a beneficial environmental feature. The product makes no claims, however, about the potential human health or environmental hazards of the product itself. Purchasers could easily be misled by the certification mark to believe that the product is safer or uses safer ingredients than its competitors when that may not be true. Review products with single attribute claims carefully. Sin of Vagueness – Broad, poorly defined environmental claims continue to make it challenging for purchasers seeking high quality environmentally preferable products. A vague claim like “100 percent natural,” for example, can be very misleading because some naturally occurring substances such as arsenic and dioxin can be very harmful to human health. Legitimate environmental claims are not vague. Sin of Relativism – A product can be the most environmentally preferable product in its class, but still be an inappropriate choice. The most fuel-efficient sport utility vehicle (SUV), for example, is still less preferable if a mid-sized passenger car will suffice.


Six “Sins” of Greenwashing

•Sin of Vagueness – Broad, poorly defined environmental claims (e.g., “100 percent natural”)

•Sin of the Lesser of Two Evils – A product can be the most environmentally preferable product in its class, but still be an inappropriate choice (e.g., “organic cigarettes”)

Presenter

Presentation Notes

The New Face of Greenwashing While greenwashing decreased following the release of the FTC guidelines, it did not completely disappear. In fact, as demand for more environmentally preferable products rises, greenwashing appears to be reemerging as an important concern for purchasers and other supply chain professionals. A forthcoming study of modern greenwashing practices identifies the following six greenwashing “sins.” Sin of Fibbing – While rare, some manufacturers do mislead customers about the actual environmental performance of their products. Some manufacturers have claimed that their products meet the environmental standards developed by EcoLogo or Green Seal when it is clear they do not. The EcoLogo program even has a fraud advisory section on its website warning purchasers about misuses of the EcoLogo certification mark. (See < www.environmentalchoice.com/English/ECP%20Home/>.) Sin of Unsubstantiated Claims – Also known as the sin of “just trust us,” some manufacturers are unable to provide proof of their environmental claims. Others use words like “green” or “eco” in their corporate or product names and hope no one asks for details. All environmental claims should be verified by an independent certifying body or auditor or the manufacturer should be willing and able to provide the necessary documentation to prove a claim when it is requested. Purchasers should be able to easily verify the recycled-content of a product or to learn whether it contains any ingredients of concern. Sin of Irrelevance – Some manufacturers make factually correct environmental assessments that are no longer relevant for the particular product category. As an example, many aerosol products continue to make “CFC-free” claims even though CFCs have been banned in these products since 1978. These accurate but irrelevant environmental claims can confuse even savvy purchasing professionals. Sin of the Hidden Trade-Off – Many products make bold claims about a single environmental attribute, which can lead purchasers to mistakenly believe that it is the only environmental attribute of concern for a particular product category. A cleaning product manufacturer, for example, is currently displaying an environmental certification mark documenting that its cleaning products are manufactured in a facility powered by renewable energy, which is clearly a beneficial environmental feature. The product makes no claims, however, about the potential human health or environmental hazards of the product itself. Purchasers could easily be misled by the certification mark to believe that the product is safer or uses safer ingredients than its competitors when that may not be true. Review products with single attribute claims carefully. Sin of Vagueness – Broad, poorly defined environmental claims continue to make it challenging for purchasers seeking high quality environmentally preferable products. A vague claim like “100 percent natural,” for example, can be very misleading because some naturally occurring substances such as arsenic and dioxin can be very harmful to human health. Legitimate environmental claims are not vague. Sin of Relativism – A product can be the most environmentally preferable product in its class, but still be an inappropriate choice. The most fuel-efficient sport utility vehicle (SUV), for example, is still less preferable if a mid-sized passenger car will suffice.


To Avoid Greenwashing…

<www.ecologo.org> <www.energystar.gov> <www.greenseal.org>

The environmental standards most frequently cited by purchasing professionals include:

•Founded 1988

•120 standards

•7,000 certified products

•Founded 1992

•50 standards

•“Thousands and thousands” of certified products

•Founded 1989

•30 standards

•2,000 certified products


Lots of Labels AroundA partial list of labels currently being used:

•Blue Angel•CFPA•CPG•DfE•Eco Mark•EcoLogo•Ecomark•Eco-OK•Energy Star•Environmental Choice

•EPEAT•EU Flower•Fair Trade•FSC•GBI•Good Green Buy•Green Label•Green Seal•GREENGUARD•Greenstar

•LEED•MSC•Nordic Swan•Process Chlorine Free•SCS•SFI•TCO•Totally Chlorine Free•USDA-Organic•WaterSense


Comparing Eco-LabelsWARNING:

Not All Environmental Claims Are Created Equal

•Type of standard

•Validity of the standard

•Standard setting process

•Verification process

Learn to ask about:


North America (ISO Type I)

Global Ecolabelling Network: <www.gen.gr.jp>

<www.ecologo.org> <www.greenseal.org>


Other Important Standards

http://sustainablelifemedia.com/�

Establishing Credibility and Avoiding Greenwash in Sustainability Communications

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